OCT 29, 2011 8:00 AM

Yes Loans To Have Credit License Revoked?

After an investigation in 2009 the Office of Fair Trading attached several requirements to Yes Loans consumer credit license but it seems the company haven’t stuck to those requirements and is now in serious danger of having its license revoked according to a BBC radio show being broadcast tonight.

The requirements (in no particular order) were:

Telephone call staff must not stray from their approved scripts
The company must make it clear to customers that they are a broker and not a lender
The company had to have a clear and timely refund policy in place

Since complaints continue to pour into the OFT, the BBC Watchdog and countless consumer web sites about all 3 of the above, you can take your pick as to why the OFT is now “minded to revoke” the Yes Loans credit license.

In a damning broadcast to be aired tonight (30th Oct) on 5 Live Investigates the BBC will reveal that the most common complaint they have received about Yes Loans is in regard to the upfront fee of £69.50 being paid only to discover they haven’t been accepted for a loan at all.

The Financial Ombudsman Service too has continued to receive complaints about the company. In the first 6 months of this year they heard 76 complaints and found against the company 75% of the time.

In response to the claims in tonights show, Yes Loans released the following statement to the BBC:

“Every month Yes Loans receives and processes many thousands of new customer enquiries and personal loan applications. Our complaints rate is less than a quarter of one percent.

“Any complaint is regrettable, and we take all of them seriously, investigating them thoroughly and doing all we can to bring them to a satisfactory conclusion.

“We are very confident that the vast majority of our customers are happy with the service that we deliver to them.”

An OFT adjudicator is currently reviewing the case. If the credit license is revoked – which seems likely – Yes Loans will have the right to appeal and can continue to trade until that appeal is ~~turned down~~ heard.

They were given their warning back in 2009 and told the exact steps they needed to take to get their house in order. Yes Loans carried on regardless and now it looks like the OFT has had enough and about time too. As we highlighted months ago in our Yes Loans review, they should never have been given a credit license in the first place.

If you have paid a fee but have not received a loan you can find out how to get a Yes Loans refund by clicking here.

You can listen to the radio show on Radio 5 tonight at 9pm

Source: BBC News